As we enter the era of electric vehicles (EVs), one of the biggest challenges the F&I office will face is consumer perception that service contracts aren’t needed on EVs. If there are no oil changes, no engine or transmission and fewer moving parts, why would an EV owner need a vehicle service contract (VSC)?
F&I managers may need training to deal with this objection. According to APCO data, 75 percent of VSC claims are on items that exist on EVs, such as tires, brakes, electronics and air conditioning. Only 25 percent of claims are on the powertrain.
That’s why it will be the F&I managers’ job to educate EV shoppers on the following.